During six month of the mini budget period, the total foreign direct investments are expected to decline by around US$ one billion from its goal of fetching US$ three billion, according to a press conference by Myanmar Investment Commission.
Than Aung Kyaw, Deputy Director of Directorate of Investment and Company Administration (DICA) said: “During the six-month mini budget period, the total FDI inflow is expected to reach US$ three billion. A decline in FDI inflow is linked to the fact that foreign countries misunderstand Myanmar and the whole six months also coincided with the rainy season. During the previous and the current six months, there are construction and an inflow of investments. The total FDI is impossible to hit US$ three billion in September. Now the FDI has reached an estimated US$ 1.5 billion. We have September only to end the six-month fiscal year. The total FDI is estimated to hit over US$ two billion including additional investments.”
Myanmar has changed its fiscal year from a March-April timeline to an October-September timeline. The government has fixed the six-month from April to September as the mini budget year.
The country needs over US$ 1.5 billion to hit its goal of US$ three billion, according to the MIC.
From April to August of mini budget year, the total FDI amounted to US$ 1.48 million, down over US$ two billion compared with US$ 3.696 billion from the same period of 2017-2018 FY.
Oil and gas sector and energy sector have topped the list of FDI. Oil and gas sector accounts for over 29 per cent of the total FDI and energy sector for over 27 per cent.
The inflow of FDI into livestock and fishery, farming and construction sectors was the lowest with less than one per cent.
From 1988-1989 FY till June, 2018, an inflow of investment into 12 sectors amounted to over US$ 76.415 billion.